“Decline in demand can be attributed to a number of factors, including the rising local gold prices, a substantial drop in the number of auspicious wedding days this year compared to the previous year, and an anticipation of an import duty cut in the Budget,” WGC India managing director PR Somasundaram told PTI.

“The transition to GST, especially by the unorganised sector, also affected demand to some extent,” he added.

He also said the PNB scam impacted the trade sentiment, which somehow got revived by the time of Akshaya Tritiya.

Total gold recycled also declined 3 percent to 14.1 tonne from 14.5 tonne, the report said.

“The first quarter is not naturally a dynamic period for gold in the country as people usually settle their other financial commitments for tax purposes. Moreover, there was also no catalyst like duty cuts to trigger demand,” Somasundaram said.

The 50 percent decline in imports to 153 tonne from 260 tonne was “mainly on account of subdued consumer demand, down-stocking following the GST transitional period and also on expectations of duty cut in the Budget,” he added.

Asked about import this year, Somasundaram said inward shipment is likely to be on similar lines with demand.

For the full year of 2018, he said, gold demand is expected to be in the range of 700-800 tonne.

“We are positive about demand going forward due to expectation of better monsoons and the resultant higher rural income and an overall better GDP growth. The compliance standard is growing and in the long-run it’s going to be positive and transform the industry,” he said.